“The Tools Get Easier to Choose and Use with a Guiding Blueprint”

1. “The Tools Get Easier to Choose and Use with a Guiding Blueprint” Twin Ports Performance Excellence Network (TPPEN) Gary Floss 18Aug104

2. Topics • Baldrige model • Decision tree for selecting tools • Most popular/often used • Examples • Help management understand the “Right Questions to Ask” that then link to reinforcing the use of tools.

3. Positioning the Application of Tools • Performance Excellence Model • Toolbox 7 Simple QC Tools 7 Management Planning Tools Creativity (Innovation) Tools 5 Why Diagram ISO 9000 Six Sigma Lean Management Tools A3 Project Template Balanced Scorecard 5 S (Others)

4. A Framework for Performance Excellence

5. Baldrige Overall Scoring Band Descriptors - Process

6. Baldrige Overall Scoring Band Descriptors - Results

7. Baldrige Top Scoring Bands – on 1000 point scale (a 900-1000 point organization) Process – The organization demonstrates outstanding approaches focused on innovation. Approaches are fully deployed and demonstrate excellent, sustained use of measures. There is excellent integration of approaches with organizational needs. Organizational analysis, learning through innovation, and sharing of best practices are pervasive. Results – Results fully address key customer/stakeholder, market, process, and action plan requirements and include projections of future performance. Results demonstrate excellent organizational performance levels, as well as nation and world leadership. Results demonstrate sustained beneficial trends in all areas of importance to the multiple Criteria requirements and the accomplishment of the organization's mission.

8. Purpose of the Toolset Define Close the gap Define What is the Vision of the Future State? Measures of Success Desired Future State To-Be As-Is Current State Improvements/Actions Needed time Now Then

9. The Challenge for Management & the Change Management Agent • What is that desired future state? • What is the current situation? • How do I close the gap? • How do I confirm that I am closing the gap? “The Right Questions to Ask?”

10. Examples: Problem (Opportunity for Improvement or OFI) indications • Key performance metric is not where it should be/we want it to be? • Audits indicating non-conformance issues? • Benchmarking indicates process results are woeful to comparisons? • Pattern of customer service complaints not understood? • Our department layout is a “mess”!

11. Over-Arching Tool The PDCA Cycle PDCA (plan–do–check–act or plan–do–check–adjust) is an iterative four-step management method used in business for the control and continuous improvement of processes and products. It is also known as the Deming circle/cycle/wheel, Shewhart cycle, control circle/cycle, or plan–do–study–act (PDSA). Another version of this PDCA cycle is OPDCA. The added "O" stands for observation or as some versions say "Grasp the current condition." This emphasis on observation and current condition has currency with Lean manufacturing/Toyota Production System literature.[

12. Establish the Focus Flow Chart DPO DPU DPMO Process Sigma Run Chart Histogram Examine the Current Situation Plan Flow Chart DPO DPU DPMO Process Sigma If data is available-- Pareto Diagram or Dot Plot Data Collection/ Stratification Run Chart Analyze the Causes . . . . . . . . . . . . . . . Cause and Effect Diagram Control Chart Scatter Diagram Pareto Diagram Act on the Causes Do DOE Impact Wheel Matrix Check the Results Check DPO DPU DPMO Process Sigma Control Chart Pareto Diagram Standardize the Changes Control Chart Flow Chart Process Control Plan Act Draw Conclusions After Improvement Flow Chart Before Improvement Control Chart Before Improvement Flow Chart After Improvement Control Chart PDCA Cycle: ACT PLAN CHECK DO http://goalqpc.com/

13. The Seven Simple QC Tools • Cause-and-effect diagram (also known as the "fishbone" or Ishikawa diagram) • Check sheet • Control chart • Histogram • Pareto chart • Scatter diagram • Stratification (alternately, flow chart or run chart)

14. Seven Simple QC Tools 1. Flow Charts 2. Pareto Charts 3. Cause and Effect Diagrams 4. Histograms 5. Check Sheet 6. Scatter Plots 7. Control (Run) Charts http://goalqpc.com/

15. Cause & Effect (Fishbone Diagram) Utilize the Thought Process that Y=f(x) Often use the 5 Why Tool in conjunction with Fishbone Diagram

16. 5 Whys & Root Causes • Root CauseAn identified reason for the presence of a defect or problem.The most basic reason, which if eliminated, would prevent recurrence.The source or origin of an event. • Determine The Root Cause: 5 Whys Why? Why? Why? Why? Why? Problem Statement

17. Process Flow Diagram

18. Pareto Chart

19. Run Chart

20. 7 Management Planning Tools • Affinity Diagram: organizes a large number of ideas into their natural relationships. • Interrelationship Diagraph: An interrelationship diagram is an analysis tool that allows a team to identify the cause-and-effect relationships among critical issues. The analysis helps a team distinguish between issues that serve as drivers and those that are outcomes. Use an interrationship diagram when a team is struggling to understand the relationships among several issues associated with a process. The tool can also be useful in identifying root causes, even when objective data is unavailable. • Tree Diagram: breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics. • Matrix Diagram: shows the relationship between two, three or four groups of information and can give information about the relationship, such as its strength, the roles played by various individuals, or measurements. • Matrix Data Aanalysis:a complex mathematical technique for analyzing matrices, often replaced in this list by the similar prioritization matrix. One of the most rigorous, careful and time-consuming of decision-making tools, a prioritization matrix is an L-shaped matrix that uses pairwise comparisons of a list of options to a set of criteria in order to choose the best option(s). • Arrow Diagram: shows the required order of tasks in a project or process, the best schedule for the entire project, and potential scheduling and resource problems and their solutions. • Process Decision Program Chart (PDPC): systematically identifies what might go wrong in a plan under development.

21. Affinity Diagram

22. Interrelationship Digraph

23. Creativity Tools Tools that show you how to restate the problem so you can see it differently, generate new ideas, transfer knowledge from other areas, and identify all possible solutions to the problem. http://www.goalqpc.com/products_detail.cfm?ProductID=5

24. A3 Methodology Template Questions Opportunity Identification/Business Case What is the key OFI (opportunity for improvement) to be addressed? Why is the OFI an issue and why is it important to fix? What are the Current State key metric data (levels, trends, comparative data)? [Charts and figures are better here than words] What is the “Business Case” for addressing this opportunity? What is the desired future state (To-Be)? What are the gaps between the as-is and the to-be? What is your Y= f(x) model -- the hypothesis regarding key “Causes” and how they are impacting the Y?

25. A3 Methodology Template Questions Improvement Plan/Risk Analysis What are the characteristics of the improvement strategy? What are important actions to be implemented? What are the key metrics that will determine success of the improvement strategy? How will you know it worked, and how well it worked? What are possible “unintended” consequences that could occur as a result of improvement actions? Tactical plan & Schedule to Implement (Start/Stop/Keep?) . Include Who will need to do What and by When, and what Outcomes will happen from those actions; tie back to Items 2 and 4 on the previous page. 25

26. Summary Chart • Understand the current situation • Define the desired future state • Characterize the gap using the analysis tools • Build the improvement plan (the “gap-closer” • Track progress to the plan

27. Questions